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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (May 23, 1920)
6 THE STTJTDAT OKEGONTX?rt PORTXAND, MAT 23, 't920 it !1 AISTEIN IS FJ Alleged Head of Band of Bond Thieves High Flyer. THEFTS RUN INTO MILLIONS Bonds and Other Securities Ob . tained Through Messengers and' Runners Deposited in Banks. : NEW YORK, May !!. Jules W. . ('Kicky') Arnstein, who surrendered himself after being Bought by the po lice of two continents as the alleged head of a band of swindlers who, by connivance with bank and brokerage -messengers, were said to have stolen ifrom $1,500,000 to $5,000,000 in bonds ;nd other securities Trom Wall street "firms, is the husband of Fannie 'Brice, an actress, whom he married ' in 1917. He disappeared from New Tork, where he maintained two lav rishly appointed apartments, besides a country home at Huntington, L. I., ; February 12 last, since which he has '. -been reported in various parts of the country. . Arnstein is the son of a New Tork business man and is 42 years old. The -police say he is as well-known in -France and England as in the United ."States. Circulars offering a reward 'for his arrest said ho "frequented "high -class hotels and gambling ; places." He is a flashy dresser. f Once, when arraigned in court, he .appeared in. a blue serge suit, a polka :dot necktie and a pink silk ehirt. Bight years ago Arnstein was ar- rested in London and extradited to ' New York for swindling William E. iShinks of Springfisjd, Mass., .out of ; $15,000 by means of 'worthless stock. A Sentenced to two years In Sin? King ; prison, Arnstein served less than a year. Six other members of the band '.were later arrested in- San Francieco, Tokio and Baltimore. More Than 50O Banks Enjoined. ; Shortly after Arnstein's disappear ance last February, a federal judge ..In New Tork issued an order enjoin ; tag 500 or more banks and depos it Itories in the metropolis from dispos ing of any money, stocks, bonds or . securities Arnstein might have on depos't in them. He was known to ' have six safe deposit boxes jn various ipublic vaults. According to the po- lice. Arnstein, together with his as-? ociates, obtained! the stolen bonds nd other securities from the mes- sengers and runners and took them to various cities where they were put :up as collateral for loans. The boys or men who committed the thefts re eeived less than one-quarter of their value and, in eome instances, nothin '. at all. More than $500,000 waa said $ have been "buried" in Canadian -banks in this way. About $760,000 Is said to have been traced to Phi la ielphia, Washington, Baltimore and . Cleveland. Assistant District Attorney Dooling r of New York, who has been prominent hi the Investigation of the Arnstein se, Baid that in four months from October, 1919, there had- been more .than 500 bond robberies ranging from : 500 to $17 8,000, and that most of them were "office" Jobs, that is, done fjr employes of banks and brokerage .- houses. He said the "system" had ;:eonnections in every large city ' in ' uio umieu Luiee. Donas m uicit in - Cleveland, Chicago or San Francisco ;".he declared, were forwarded to fences in New Tork or other cities who put . them up as collateral for., loans. Financial Dbrtrict TJndermined. , . "Hidden strings are being pulled,1 declared Bernard J. McGinn, manager , of the claim department of the Amer lean Surety company, "through un derground channels which ', seem to undermine most of the financial dis- trict. Leaks, it seems, are taking "place within stock exchange houses and it looks as though an organized Intelligence service is in operation Arnstein's name, according to the police records, came into prominence Jn the case last February in connec tion with the arrest in New Tork of --Joseph and Edward Gluck, brothers, ' Herbert and Rudolph Bunora, . and Edward Furcy, bank and brokerage tmoasengers in Wall street. He was ' apecif ically charged with receiving $42,000 worth of Crucible Steel cer . tificates stolen from a New Tork - brokerage house. Some of the pris oners stated that Arnstein and his alleged partner, Nicholas Cohn. for whom rewards of $2500 are offered had received from them and disposed of more than $2,300,000 worth of . bonds and other negotiables. Shortly after Arnstein's flight last prCDruary, hearings were held- in the Z federal court in New York to have T1m adjudged an involuntary bank uit It was there charcred that "his "'assets consist of many thousands of . dollars. A few weeks later, a New Tork lawyer, who said he was coun sel for the fugitive, reported he had .met Arnstein in Cleveland, and that ho had told him he was "Inoncent" .'of the bond theft charges .and would ' surrender if bail was fixed at $35,000. lie said1 Arnstein had rheumatism and -feared imprisonment in a cold, damp cell in the Tombs if more than this -amount of bail were demanded. He ', aid Arnstein had told him be had ' won f 18.000 In a crap game in Cleve ; land and lost $S2,000 the next night - In the same place. One Case Takes Tragic Tarn. The bond thefts, which have been froing on for months in New Tork, - took a tragic turn in one case. Ben . jamin M. Binkowitx. a messenger em t ployed by Richard C. Whitney & Co.. bankers and brokers, who disappeared In August. 1919. with $178,000 worth ,of securities, was stabbed to death ;and his body left alongside a road near Milford, Conn.' Arnstein and his ' associates, however, have not been connected with the crime. The po lice, in working on the Binkowitz. murder, said it was committed1 by the . same band which participated in the ; killing of Barnet Baff, a wealthy ,. New York poultry merchant, in No ' vember, 1914. During the bankruptcy proceed- Inge. David W. Sullivan, of T. W. ; Sullivan & Co., a former brokerage ' firm of Washington, D. C., 6tated un ; der promise of immunity that his firm had obtained $600,000 worth of I bonds from Arnstein and Cohn during ' the past year, all of which, he be ! lleved. were stolen. Sullivan said he ; tried to break away from the pair, but that Arnstein said: "You have gone this far with us - and if you ' do I'll kill you." Among the nura- erous arrests made in the bond theft ; rases In New Tork, from time to time, - were those of James Keane and James . Haines, two private detectives from Montreal, who are held as material witneeses in the Tombs. to the grievance of presidenr'Wllsoa'B Oregon telegram, the democratic or ganization in New Tork has another which ia more. local and personal. A vacancy in a federal judgeship in New Tork was filled by the president with out consultation with the New Tork state democratic organization and against their wishes When this was done the more powerful democratic leaders in New Tork. already in a state of irritation, felt that, as one of them expressed it. "this is the end." Hostility to McAdoo on the part of the democratic organization of New Tork state would not alone defeat him. Woodrow Wilson was nominated in 1912 with the New York delegation opposed to him. So also was Grover Cleveland. Cleveland's case dupli cated McAdoo's-a '- candidate from New Tork with his own state organi zation opposed to him. 'Other States. Oppose. . Indeed, as ' One of Mr. McAdod's friends expressed it, "the opposition of Tammany will help Mrw McAdoo and the rest of the country." But there are more stateB than New Tork whose leaders feel implacably hostile to Mc Adoo. And they' are big and impor tant states. The present democratic leadership of Massachusetts considers opposition to the treaty as the main duty of all patriots and is not willing to give apparent indorsement to Wil son's stand on the treaty by nominat ing for president a man so closely related to Wilson, both officially and personally, as McAdoo is. ' Illinois is not for McAdoo. Both Ohio and Indiana are against McAdoo. because they have candidates of their own. Iowa is not for McAdoo. Ten nessee is not for him, and Geflrgia not for him. As to the lat ter two states coupled with New York there is a saying among democratic leaders that McAdoo will not have the support "of the starts he was born in. of the state he lived in, nor the state he votes in. r - The common denominator of the op position, to McAdoV and the bene- flolary of it is Cox of Ohio. Cox just now is indisputably .in the lead. .' Palmer s fortunes have not been el evated by McAdoo's recession. The democratic leaders feel that Palmer is eliminated by his failure to make satisfactory progress in these states in which he entered the primaries and also by the present critical attitude of the public opinion generally. 0 1BI THE BUSINESS OF THE COUNTRY IN A DEMORALIZED CONDITION The agitators against - high prices have accomplished their purpose. They've brought prices down with a bang, not because merchants' were profiteering, either, but because of irresponsible charges made by persons who knew nothing about conditions and did not know what profiteering was. " Let all remember that today it costs 40 to 50 to operate a business. Every merchant who puts on a sale at this time will lose money heavily, as stores must pay 25 more for stock to sure enough, or go without. replace stock sold, and for fall you will have to pay high prices, Since the condition exists, notwithstanding the fact that we sell clothes for less every day in the year, still we are compelled to make further sacrifice, and you, Mr. Customer, profit by our loss, and our entire stock of men's and women's wear will be sacrificed, going right down the line. TENMLE1J, SUCCESS 110 FAMIIIES COMFORT-iBLE UXDER CAXVAS. People Temporarily Forced to Ijive Outdoors Are a9 Happy, a.a Could Be Expected. NEWARK, N, J Stay hun dred and ten families, evicted by land lords, are comfortably housed in Valis- burgh park today under tents- loaned to the city of Newark by the war de partment. , It is a real tentville, whose denizens, although temporarily home less, are as happy as- could be ex pected In a community forced to live outdoors. It is expected that before the end of summer, 200 more families Will have' joined the little colony. - ' Captain Thomas W. Iteilly, a ma chine-gun man with a fine overseas record, laid out the place and gave each ' arrival a first-come, first-serve choice of their canvas habitation. One of them was a young widow with four Children. She received an order to va cate her apartment after failing '-'to defeat her landlord in a lawsuit.; The city appropriated $26,000 for the operation of the camp and Gov ernor Edwards donated a big tent which, in the center, serves as a com munity kitchen. Army food from the municipal sales Stations helps further to keep down the cost of living. The new settlement is provided with many conveniences, including a sewerage system, running water, a laundry tent equipped with tubs and stoves for ironing, shower baths and toilets. The total cost of installing the im provements was less than $600, ac cording to Captain Reilly, the largest single item being $120 for heavy in sulated wire for electric lights. Sol diers and a number of city employes helped to put up the tents, which are 16x16 feet and lay the board flooring. The tents are boarded up three feet from the ground. Most of the inhabi tants of Tentville have stored their furniture in the prospect of better days and are sleeping on cots fur nished by a local hospital. The "town" is laid out in eight streets with one main avenue bisecting them. SALE PRICE Chesterfield Clothes. Men's $50 Suits and Overcoats Sale Price $39. 50 Mens $60. Suits and. Overcoats Sale Price $43. 50 Mens $70 Suits and Overcoats Sale JPrice $52.50 Mens $80 Suits and Overcoats Sale Price $61.50 SPECIAL SALE Men's Fine Shirts SPECIAL SALE PRICES . $1.85 $2.15 . $2. 75 . . $2.85 . . $3.95 $2:50 Shirts . . . $3.00 Shirts $3.50 Shirts . . . $4.00 Shirts . . , $5.00 Shirts . . . Silk Shirt Special $10.00 Shirts...... $6.95 $12.00 Shirts ...... $8.75 $15.00 Shirts . . . . .$10.95 $20.00 Shirts $15.00 SPECIAL SALE NECKWEAR $1.50 Neckwear . . 95c $2.00-$2.50 Neckweari.45 $3.00-$3.50 Neckwear2. 25 SALE PRICE LADIES' SUITS, GOATS, DRESSES $50 to $60 Values $37.50 $65 to $75 Values $47.50 $85 to $100 Values $65.00 $110 to $125 Values $85.00 $125 to $150 Values $105 i Come while stock is full and make your selections, and don't forget to buy a year's supply. R. M. GRAY'SSSS' 1921. There were 42,200 automobiles licensed in this state in 1919. ..' .'Oregon Bank Asks Charter. ORSGONIAN NEWS BUREAU, Washington, - May 22. The treasury department 'yesterday received appli- catlon from the First National bank of Sherwood, Or., for federal charter. The new bank proposed to open with a capital of $25,000. - Forest Protection to Be Taught. HELENA, Mont., May 22. Begin ning today, this is forest protection week in Montana, so, set aside In formal proclamation by Governor Sam V. Stewart. forest fires and their damage and peril and how to avert them are to be discussed in the schools, commercial clubs and pulpits of the state. Fires are especially disastrous in the woods of Montana and last year they were almost the record. Kelso Shingle Mills Shut Down. KELTO, Wash.. May 12. (Special.) The Crescent Shingle company's mill, the Jast of the local shingle plants in operation, shut down last evening on account of the unfavor able market and car conditions. The other two mills of this city and' the Barr Shingle company's plant at Ka- lama are already closed, and the Co lumbia shingle mill at Kalama will shut down today. Nearly all small mills in this vicinity are also closed. Date of resumption is de pendent upon a more favorable con dition of the market. Xuniher of Autos Increase. BOISE, Ida., May 22. (Special.) It is estimated by Secretary of State Jones, who is in charge of licensing automobiles , In this state, that at least 76.000 plates will be needed- In DEMOCRATS SHIFT TO COX (Continued Prom F!rst Pays.) date from their own state. But if the convention were held tomorrow they most certainly would not. In addition Who owns this wonderful 194-karat diamond now? The dark tragedy of the Ro manoffs shadows its fate. 'Midst the splendors of the Russian court its brilliance flashed from the emperor's scepter as inscrutably as it once gleamed from the eye of a Brahmin god. Beautiful assortment of diamond rings for engagement and grad uation gifts. SPECIAL VALUES AT $50, $75, $100 Mr. v Business Man! Who's Your Stationer? Choose one whose lines are nationally-known ones, whose goods are of proven worth, manufactured by the nation's biggest industries. The 1 Orloff . . .. Y TTfr A - ALA HIS I SJc Sanford's Inks, Glues, Mucilage, Paste, Etc Webster's Carbons, Typewriter ribbons.' Eaton, Crane and Pike Berkshire Typewriter Papers and Envelopes Sengbush mm si !r juulHimiumyniUiuuuuniiiiMimiiimg The Stenographer's work can not help being improved by the use of Star Brand ribbons. They give clear, sharp, per manent impressions. - -a If irttmrnmtmd oar malamman unit gladly caZ7 upon yoa utmoity "STICKUMS" Glue, paste, mucilage, stick like brothers. For all mend ing purposes. Inkwells of all styles and prices. Dennison's Labels, Seals, Mucilage, Glue, Paste. American Electric Co. Burns Telephone Arms, Backs, Etc. , Desks, Tables, Chairs, Filing Cabinets, Globe Safes, Sectional Bookcases - 9M i 1 'ni"! ' innwnaM i.u n.iiiiiin i iiiniiiiijMij- a i 2 :::::::: : playing sJfH 5 : : : i : : 51 ( TTM MSOUE) 1 to6PtiMs F ft J Exclusive agents for Globe Wernicke Co.,,Keuffel and Essex Co'., and Direct Im porters of Winsor and Newton Artists' Materials. Gill's The J. K. Gill Co. Booksellers, Stationers, Office Outfitters. Third and Alder Streets. Ben Turpin i in a Feature Comedy, The Nutcracker" Pathe News from , the Saturday Evening Post Story by Henry C. Row land. Remember the mysterious little black boxes tied togrether floating- In the At lantic? Remember how Captain Plunkett, Just out of the A. E. F., is Inveigled by mysterious Patricia Melton Into a wild ride in a little launch to get them in the teeth of a terrific storm? That's how it begins. It waa a wonderful etory in the Post. The realism added on the Bcreen, through unusually good produc tion and the magnificent work of Tom Moore, makes It a. masterpiece of intense, vivid and thrillins mystery. ii - ,MMHVatBfcF I CDeptotlnc the theme j PBlrTIl L ' r ' 1 of "nixie" through the 1 ' fe B'M ff.Mi IBV ijWVl i :1 followim itaiu: The I TSiTStlon V.lCTien ank Von Hrberg f fi Creation ; Dance Abo- I T IF r '''"'I SK"oS5li"bSS I Cecil Teague At the Wnriitxer and tn Concert Today at 1:30. PROGRAM: Undr Western Skle' .... ...Henry Murt&ih Serenade Plerna Overture "Maritaoa." - Wallace TClse He Walt"... Victor Herbert Involution of "Dixie ..xaite